The dark side of the oil train boom – Senate panel vote on FERC nominees today

THE NEW OIL CRISIS — EXPLODING TRAINS: Kathryn A. Wolfe and Bob King have today’s must-read story: Communities throughout the U.S. and Canada are waking up to the dark side of North America’s energy boom: Trains hauling crude oil are crashing, exploding and spilling in record numbers as a fast-growing industry outpaces the federal government’s oversight. In the 11 months since a runaway oil train derailed in the middle of a small town in Quebec, incinerating 47 people, the rolling virtual pipelines have also made headlines in Alabama, North Dakota, Philadelphia, Pittsburg and Lynchburg.

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These dangerous moments on the rails raise questions about the safety of transporting increasing amounts of oil in mile-long chains of tank cars, some of them decades old. Community leaders and activists from Oregon to Alabama to Albany call the trains a disaster waiting to happen — despite the Department of Transportation’s efforts to play catch-up through a series of emergency orders, agreements with industry and proposed regulations being reviewed by the White House. The story: http://politi.co/1yijEZi

SENATE ENR VOTE ON FERC NOMINEES TODAY: The Senate’s energy panel will vote on Norman Bay and Cheryl LaFleur’s nominations to FERC this morning — but the details still aren’t clear. Lawmakers have been in talks for more than a week trying to persuade the White House and Senate Majority Leader Harry Reid to extend the time LaFleur gets to wield the agency gavel — giving Bay some time on FERC’s five-member leadership before he’s ultimately elevated to the top job, a position designated by the White House. Sens. Joe Manchin and Dean Heller have said that the talks have revolved around extending LaFleur’s chairwomanship anywhere from six months to a year. There’s been some chatter that the difference might be split to nine months. Energy and Natural Resources Chairwoman Mary Landrieu didn’t give any hints about the closed-door negotiations yesterday, but said the votes would happen “regardless of whether there’s a deal or not,” adding: “They’ll either go forward or they’ll all fail.”

There are at least three important questions surrounding the FERC nominee deal: First, exactly how long will it allow LaFleur to remain in power and when does the countdown clock start (ie. upon her reconfirmation? Or in about six months when her term would otherwise end?)? Second, how well does Harry Reid, who wants to see Bay atop the agency, stomach any deal and allow the nominations to come to the floor? And, thirdly, does the White House keep up its end of the bargain, whatever that might be?

2014 WATCH — LANDRIEU AND KEYSTONE XL: The panel will also vote on a bill approving Keystone XL ( http://1.usa.gov/1lQJIp1) that isn’t likely to make it to the floor, with Senate Majority Leader Harry Reid signaling yesterday the legislation would have a hard time getting into the chamber. But it will give Landrieu a tangible victory on a high-profile election issue after leadership-level talks failed to bring about a vote on the pipeline last month. The vote also comes just a day after Landrieu’s campaign released a video featuring New Orleans resident Virginia Saussy praising Landrieu's ENR gavel as "a major achievement." ( http://youtu.be/ewJN5STqEms).

The bill is likely to clear the committee with the support of Landrieu, West Virginia Democrat Joe Manchin and the committee’s Republicans — but that doesn’t mean the GOP is happy about it. “Mary Landrieu can bring this [bill] up every day from now until the end of the year and it’s not going to mean anything because it’s obvious that the people who really support it and are pushing for this pipeline are the Republican members of the Senate,” Sen. John Barrasso, ENR’s No. 2 Republican, told reporters yesterday. “It’s only ginned up so Mary can use it for political purposes,” he added. “So, this is not moving the ball forward at all. This is all focused on her attempt to get reelected in Louisiana.”

— Barrasso’s office also shot out an email Tuesday arguing opposition from Reid and the administration “crushes” and influence Landrieu might have. Landrieu “knows a committee-reported bill alone will not make any difference in the lives of her constituents unless it becomes law. Her job is not done, as she has suggested, after the bill makes it through only one-third of the lawmaking process.” Read: http://1.usa.gov/1smlgkd

Mail call: The National Association of Manufacturers supports the bill, the group wrote to ENR leaders yesterday: http://bit.ly/1r3IK9o

Also in KXL news — South Dakota split: Rick Weiland, the Democrat running to replace the retiring Sen. Tim Johnson, says Keystone XL is a "big money con" that would benefit investors but not the citizens of South Dakota. "That's not a jobs program for the United States, but that's the way they've tried to sell it," Weiland said. His GOP opponent, former Gov. Mike Rounds, backs the pipeline. AP: http://bit.ly/1yfbBw5

**A note from the Air-Conditioning, Heating, & Refrigeration Institute (AHRI): AHRI member companies are working every day to keep you comfortable all summer long with the most energy efficient products on the market. That’s cool! But the Department of Energy’s new rules for commercial refrigeration will mean higher prices, fewer jobs, and less energy savings. That’s not cool! Here is the latest http://politi.co/1s9K2nr. **

THE REST OF THE MEETING AGENDA: The committee will also vote on the nominations of Suzette Kimball to be director of the U.S. Geological Survey, Estevan Lopez to be commissioner of the Bureau of Reclamation, and Monica Regalbuto to be assistant secretary of Energy for environmental management. Also on the docket are a bevy of water-related bills. Full list is here: http://1.usa.gov/1hRjK4Q

IN TODAY’S FEDERAL REGISTER: EPA is making it official: The agency’s greenhouse gas emissions rule for existing power plants is in today’s Federal Register. That kicks off a 120-day public comment period, putting the deadline mid-October. FR notice: http://1.usa.gov/1nNN1gx

WSJ POLL SHOWS TWO-THIRDS BACK EPA RULE: A Wall Street Journal/NBC News poll out today found 67 percent of respondents support EPA's new rules, while 29 percent oppose them. Additionally, 57 percent support requiring companies to cut emissions, even if it means higher power bills, up from 48 percent in October 2009. More: http://on.wsj.com/1niQ5PG

BRING YOUR FORMER REPUBLICAN EPA ADMINISTRATOR TO WORK DAY: The Senate Environment and Public Works Committee's clean air panel will hear today from four former GOP EPA administrators about acting on climate change: William Ruckelshaus, the first EPA administrator who served again under Ronald Reagan; Lee Thomas, another Reagan-era official; the George H.W. Bush-era William K. Reilly; and George W. Bush's first EPA chief, Christine Todd Whitman. All four penned a 2013 New York Times op-ed calling for "substantive steps to curb climate change" ( http://nyti.ms/1nipXVk), so watch for Democrats and Republicans to question them in particular over EPA’s new rule for existing power plants. Hearing info: http://1.usa.gov/1scuVK4. 10 a.m., Dirksen 406

BLUEGREEN CHIEF TO ADVISE MONIZ: BlueGreen Alliance Executive Director David Foster is moving to DOE, where he will serve as a senior adviser to Secretary Ernest Moniz on industrial and economic policy. “Under the leadership of President Obama and Secretary Moniz, we’ve seen tremendous progress responding to the threat of climate change, while at the same time creating more opportunities for working families,” Foster said. “That’s been the goal of the BlueGreen Alliance since its inception.”

— Replacing Foster at the BGA will be Kim Glas, the deputy assistant secretary of Commerce for textiles, consumer goods and materials. Legislative and Policy Director Michael Williams will transition to become vice president for development and corporate initiatives, while Susan Green, a onetime Ted Kennedy counsel and former Labor Department official, takes over as legislative and policy director.

CANADA BACKS OIL SANDS PIPELINE TO PACIFIC: With the Obama administration’s Keystone XL review lumbering through its fifth year, the Canadian government gave conditional approval on Tuesday for another major project, Enbridge’s Northern Gateway Pipeline, which would carry crude from Alberta’s vast oil sands to Canada’s West Coast. Andrew Restuccia has more: http://politico.pro/1vMXLPz

FEDERAL JUDGE KEEPS WIND TOWER TARIFFS IN PLACE: A federal judge on Tuesday backed the U.S. International Trade Commission's 2013 decision that some Chinese and Vietnamese wind towers were hurting the domestic industry. The ruling by Judge Mark A. Barnett of the U.S. Court of International Trade keeps in place tariffs imposed on those imports. Barnett ruled that the foreign companies that brought the suit "failed to show that the ITC’s decision was not an affirmative threat finding as a matter of law, or to show that the agency lacked substantial record evidence to support its determination," according to the law firm Wiley Rein, which represents a coalition of domestic manufacturers. Barnett's ruling is not yet publicly available; attorneys have until June 27 to flag any portion of the opinion that should be redacted because it contains confidential information.

QUICK HITS

— North Dakota's oil production has passed 1 million barrels per day in April, according to new data. FuelFix: http://bit.ly/1lQsQyB

— An Oklahoma Republican says Koch Industries is "trying to punish him politically for questioning the company's lobbying against the state's renewable energy standards for utilities," the AP writes: http://bit.ly/1lwGUOT

— Pepco and D.C. want regulators to approve a plan for more underground power lines. Washington Post: http://wapo.st/SS8Yzt

— Washington set a new heat record for yesterday's date as temperatures at Reagan National Airport hit 97 degrees. WaPo: http://wapo.st/1iEDW50

— Federal prosecutors want more time to decide whether to appeal the ordered retrial of a BP employee. AP: http://abcn.ws/1r3JmM2

— America’s Energy Advantage wants DOE to extend the public comment period on its proposed changes to the LNG export approval process to 120 days: http://bit.ly/1pe6jwK

THAT’S ALL FOR ME. Have a great day.

**A note from the Air-Conditioning, Heating, & Refrigeration Institute (AHRI): AHRI member companies are working every day to keep you comfortable all summer long with the most energy efficient products on the market. That’s cool! We’ve worked cooperatively with the Department of Energy on many regulations for our industry, and we have had great results with big improvements in energy efficiency. That’s cool, too! But DOE’s new rules for commercial refrigeration will mean higher prices, fewer jobs, and less energy savings. That’s not cool! Here is the latest http://politi.co/1s9K2nr. **

CORRECTION: A previous version of Morning Energy misstated how long America’s Energy Advantage wants DOE to extend a comment period.

About The Author

Alex Guillén is an energy reporter for POLITICO Pro, where he covers EPA, regulations and coal, as well as lobbying and campaign finance in the energy realm. He previously wrote the Morning Energy newsletter. He graduated from the College of William and Mary in Williamsburg, Va., with a degree in anthropology and English. He is an avid reader and TV binger. The Delawarean, thrilled that there are finally Capriotti’s outposts in Washington, lives in Alexandria, Va.